Venture Corporation (Venture)

Venture gets 'buy' from OCBC, DBS but Maybank says watch out for near-term volatility

SINGAPORE (Apr 29): Analysts are mostly positive on Venture Corporation after it announced that its 1Q19 earnings have increased by 8.9% y-o-y to $90.9 million.

This was mainly due to an 8.5% y-o-y increase in revenue to $928.8 million, despite pricing pressures and intense competition in the business environment.

On a fully diluted basis, earnings per share (EPS) rose to 31.5 cents in 1Q19, compared to 28.8 cents in 1Q18.

V-shaped recovery needed by Venture to regain investor confidence: CGS-CIMB

SINGAPORE (Feb 12): Venture Corp will need to deliver on its guidance of a V-shaped recovery in 4Q18 to regain investors’ confidence given the unexpected earnings miss in 3Q18, says CIMB-CGS Securities.

CIMB-CGS currently estimates 4Q18 net profit of $100.7 million, down 29.6% y-o-y. As at Feb 8, consensus expectations are for 4Q18 net profit of $99.9 million, down 30.2% y-o-y. Venture will report after the market closes on Feb 22.

Outlook of tech manufacturing stocks hinges on trade talks, says RHB; top picks include Venture and Fu Yu

SINGAPORE (Jan 11): Despite the 90-day truce, RHB Research remains cautious on the tech manufacturing sector’s outlook, since the trade war could potentially worsen in 2019.

However, there is also a chance that the tech sector could rebound if positive news emerges from the ongoing trade talks, says RHB.

Its top picks are Venture, which has less exposure to the trade war, and Fu Yu, for its sound balance sheet and attractive dividend yield.

Right timing: Major blue chips break support as STI drifts lower

SINGAPORE (Dec 22): The Straits Times Index ended the week below its 50-day moving average, currently at 3,068. Quarterly momentum has retreated and appears poised to fall below its own moving average.

The 21-day RSI continues to retreat. ADX which had been falling, has flattened. DIs are negatively placed. When ADX turns up, the STI could fall towards its Oct 26 intra-day low of 2,955.

Right timing: Signs of short-term stability emerging from STI

SINGAPORE (Oct 19): Here are two charts for our technical analysis this week

Straits Times Index (3,062.51)
Although the Straits Times Index remains below its moving averages, short term indicators may have found a floor. Short term stochastics is at the low end of its range, and 21-day RSI has rebounded off its oversold line.

In the meantime, the STI has stopped falling, and is attempting to establish support at 3,030.

Right timing: STI tests support at moving averages

SINGAPORE (May 25): STI tests support at moving averages
Despite a mild 16-point downward drift, the Straits Times Index is at an important juncture, as it tests the confluence of the 50- and 100-day moving averages at 3,507 to 3,510. Quarterly momentum retreated but could hold at its equilibrium line.

Tech sector clouded by trade worries

SINGAPORE (May 24): The tech manufacturing services sector could take a hit if a US-China trade war breaks out, especially when there are signs of a slowdown in the semiconductor industry.

CGS-CIMB Securities therefore advises investors to aim for range-bound trading opportunities instead of chasing tech share prices.

The International Monetary Fund (IMF) expects global economic growth of 3.9% in 2018 and 2019, however it is worried about the erosion of support for global economic integration given the inward-looking shift in policies.

Citi keeps Venture at 'buy' saying fears of customer risks unfounded

SINGAPORE (May 8): Citigroup is keeping Venture Corp at “buy” with unchanged $31.74 target, saying sales contribution by Philip Morris International’s looks closer to 12% than the 30% feared by investors.

In addition, Venture’s PE valuations are now at 9% discount to Singapore’s market average but with earnings growth at least twice better, says Citi.

Right timing: STI's continuation pattern to persist

SINGAPORE (Dec 8): Here are some charts for our weekly technical analysis.

Straits Times Index (daily)
The week of Dec 4-8 was somewhat volatile for the local market with the Straits Times Index (3,429). falling to a low of 3,388 before recovering.

Venture's stellar 3Q not flash in the pan

SINGAPORE (Nov 7): Venture’s earnings surpassed expectations in 3Q17 as net profit surged 135% y-o-y to $111.4 million on the back of a 50.5% growth in revenue to $1.06 billion.

And although Venture’s share price has gained over 95% year to date, analysts believe there is still room to run as it continues to deliver superior earnings performance.

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